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Growth in SaaS, and the risk to SMBs of being left behind

In the 2021 ISG Provider Lens Enterprise Application as a Service Platforms report, the firm suggests that combined SaaS and infrastructure-as-a-service (IaaS) annual contract value is expected to grow by 21 per cent in 2021.    enterprises are expected to launch major projects over the coming 12 to 18 months aimed at business continuity, centralization, cost optimization and greater collaboration and visibility.  

Global demand is surging for vertical software-as-a-service (SaaS) solutions aimed at specific industries, according to new research, bringing the SaaS market back from a pandemic slump and positioning it for rampant and continued growth in the coming months.  

And, In the Organisation for Economic Co-operation and Development (OECD)’s policy document The digital transformation of SMEs, the paper’s authors warned that the gap between SMEs and larger firms is more pronounced in the adoption of more sophisticated technologies.

They wrote that despite the benefits and opportunities that digital technologies bring, and the significant increase in take-up in recent years, many SMEs continue to lag in adoption, and for smaller SMEs with 10-49 employees, digital adoption gaps, compared to larger firms, have grown over the past decade.   This from Computer Weekly.

Why do we care?

Combining two things – SaaS adoption, increasing in enterprise already, and then the portential for gaps in SMBs.      That’s not necessarily new… and does highlight the possibilities. Since SaaS can deliver so much of those capabilities *TO* those SMBs, this should be a gap that can be overcome.   

It’s the IT services provider opportunity, really.  Highlighted right here.    I still worry about too many small providers not truly going all in here, and will be left behind.     It’s why we care.